Govt plans ways to raise incomes and source new markets for goods to tackle cost of living – Prof. Prasad

The surest way for the Government to respond to the cost of living is to raise incomes.

That is the comment of Deputy Prime Minister and Minister for Finance, Professor Biman Prasad while speaking at the Fiji Institute of Accountants Congress.

He says they have initiated a review of minimum wages, and will work with the tripartite stakeholders to adjust and lift minimum wages.

They are constantly seeking new markets to source goods more cheaply – in Indonesia, China and India and across Asia.

Professor Prasad admits the past year has been challenging and returning VAT to 15 percent on many household items has hurt.

He says we are paying the price for many years of poor fiscal management.

Professor Prasad says when we do not fund the Government properly, it is the poorest people who suffer the most.

He says when health, education and welfare systems are weakened and when road, water and other infrastructure are degraded by neglect – it is the poorest families who pay the greatest price.

Professor Prasad says we have to find the resources to restore and rebuild our social and physical infrastructure.

The Deputy Prime Minister says our water situation is improving as the Water Authority of Fiji is now assured of longer-term funding.

He says they have begun to fundamentally transform our health system.

Professor Prasad stresses that they must get these basics right, as this is their pact with the people.

He adds for an island state that is highly import dependent, managing the cost of living is a complex challenge.

The Deputy Prime Minister says for years the Government tried to control rent and prices.

He says we now see that this has adverse consequences in other ways.

Fiji is now facing acute shortages of affordable housing for rent as a result.

He says bus fares were held down for years for political reasons and many operators were forced to withdraw bus services on so many routes as a result.

Professor Prasad says these may sound like academic discussions to those who face constant pressure on their household budgets daily.

He says it makes no sense whatsoever for the country’s finance minister to tell our families that Russia’s war on Ukraine is why bread is more expensive.

He adds it is even more senseless to tell hurting mothers that kerosene is more expensive because of a raging conflict in Gaza and in Mid-East.

Professor Prasad says as we improve productivity, incomes will grow.

He is seek people’s partnership in taking our productivity to the next level – from farmers using FDB resources to improve productivity on their vegetable and yaqona farms; to manufactures applying new technology to reduce costs.